Tradewinds article 26.08.2020

Susesea Holdings orders dry bulk newbuildings at Nacks

Singapore-based operator says deal for ultramax pair is its first Japanese ship finance agreement

26 August 2020 7:07 GMT UPDATED 26 August 2020 7:27 GMT By Harry Papachristou

Susesea Holdings has ordered a pair of bulkers at Nantong Cosco KHI Ship Engineering (Nacks), adding to the ultramax contracts placed recently with the Chinese-Japanese shipbuilding venture.

Singapore-based Susesea announced on its website it concluded an agreement for a pair of 61,000-dwt vessels with Nacks in June.

This is its first Japanese ship finance project, Susesea said without revealing any further details or information about the contract.

According to Athens-based brokers and IHS Markit, the vessels will be built to the IMO's Tier II emission standards. Set for delivery in 2021, they are identified as Hulls No KHI 349 and 350.

No details have emerged on the vessels’ price. According to some brokers they cost $22.8m apiece but TradeWinds understands this figure is not correct.

This is the second ultramax order known to have been placed recently with Nacks, a joint venture between China Cosco Shipping Corp and Kawasaki Heavy Industries of Japan.

Norden earlier this summer ordered six such vessels at the yard, expected to be delivered to the Danish shipowner-operator in 2022. Norden did not disclose the contract price for the quartet.

This business brings some succour to an otherwise ailing bulker newbuilding industry. According to Clarksons, just 94 bulkers have been reported ordered so far this year, down 52% from the corresponding period of 2019.

Bulkers account for 26% of all ships ordered since January, in terms of numbers. That compares with 28% of all ships ordered during the entire year of 2019 and 33% in 2018.

The newbuilding slump, largely caused by the Covid-19 pandemic, takes a toll on prices. The Clarksons Newbuilding Price Index for bulkers has dropped in August to its lowest level since May 2018.

Susesea currently has a fleet of one supramax and four ultramaxes. One of those, the 61,600-dwt MV Great 61 (built 2015), is already built to Nacks’s 61 design.

The company said it chartered-in three additional vessels over the summer. Susesea fixed a 63,500-dwt newbuilding by the Sumec Group for up to 12 months, the 52,000-dwt Punta (built 2013) for eight months and the 35,800-dwt Capricorn Confidence (built 2020) for two years.

Susesea is linked to Turkey’s Turgut Aydin Holdings, a conglomerate spanning retail, textile manufacturing, healthcare and fast food restaurants.

Earlier this month, Turkish shipowner and manager Densay Shipping contracted an ultramax trio at Nantong Xiangyu Shipbuilding & Offshore Engineering.(Copyright)